Want to learn how to create a journal entry in QuickBooks Desktop? Well, no worries your search ends here? This article will explain when you need to create a journal entry in QuickBooks and walk you through the entire procedure of journal entry in QuickBooks Desktop.
As you know accounting is bit complicated to carry out and entering wrong accounting transactions in accounting system, splitting of transactions in two different general ledger accounts are the errors that you usually make. This will cause you to do changes to the transactions even if they are recorded already. For this situation you can easily create a journal entry in QuickBooks desktop to adjust or correct transactions and post entries in an accounting system. Almost all of your journal entries can be created automatically by QuickBooks e.g. at the time of sale in a retail or other commercial organization.
However, you can create journal entries easily within few steps. It is a very simple and straightforward process where it is done for one customer or vendor at a time. But if you want to make or create changes in the balance of more than one customer then in this case you have to create separate entries for them. So, we would recommend you to scroll through the entire article to grasp the process properly. Moreover, if you want any technical assistance for the process then feel free to reach out our techie experts by simply calling them i.e +1(844)405-0907 Our dedicated team of professionals is ready to serve you out round the clock with the entire process in the best possible way.
What is meant by Journal entries in QuickBooks?
Journal entries are the records of accounting transactions that are kept in a general ledger. They let you move money between accounts and force your books to balance in specific ways. In simple words, it is a record of transactions that show the credit and debit balance of the company. Journal entries are considered to be very important and essential part for business accounting as all of your business’s financial reports rely on them. All the journal entries are the basis of many of your Balance sheets, income statements, and cash flow statements etc. So, use them only if you understand accounting or by following the advice of your accountant. Beside this you should have a good understanding of debits and credits. So, follow the post ahead and explore further!
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Few reasons to create a journal entry are:
- Journal entry is needed because it enters debits and credits manually, like in traditional accounting systems.
- Also required when there is money transfer between income and expense accounts.
- It is also recorded when the money is transferred from an asset, liability, or equity account to an income or expense account.
Important points to keep in mind while making Journal entry in QuickBooks desktop are:
- It is usually advised not to create journal entry for inventory or payroll accounts.
- To create entry in account payable and account receivable you are required to have a customer or a vendor.
- Both of these account payable and account receivables are to be used on second line of the journal entry.
Procedure to create a Journal entry in QuickBooks Desktop
Journal entry created in QuickBooks is of a great help to managers and accountants to record transactions or transfers of amounts between accounts. By following these step-by-step instructions, you can easily make most general journal entries in QuickBooks Desktop. They are as follows:
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STEP 1: Go to the Journal Entry Feature.
At first you have to look for the journal entry feature from the ‘Company’ option.
Click on the ‘+’ icon at the top right of the file for a drop-down menu.
Now Create option appears where you will see Journal Entry option, Click on it. This will divert you to the Make Journal Entries window which has necessary blank for the information to add on.
STEP 2: Enter the Date and Journal Entry number.
Now, enter the Date for your journal entry if required as QuickBooks by default will already add the current date. But if in case you are creating any journal entry from a particular date then you are supposed to change it before moving ahead. This will record your entry in the appropriate financial time period.
Then in the Entry no field fill the entry number for your journal entry because QuickBooks will again add the number sequentially for subsequent entries.
STEP 3: Enter the other Necessary information.
After the entry of date and journal entry number, fill up the other required information.
- Account column – In this account column enter the journal ledger account number in the account column.
- Journal Code – It is another important thing that you should enter new code for you journal. Be certain to use same code which is also used by transactions for the debit and credit accounts.
- Debit and Credit Column – Now in the Journal entry list the Debit accounts first and then credit accounts from the drop-down menu. Enter the amount which is debited in the debit column. Whereas QuickBooks automatically enters the credited amount under Credit Column. To make the entry balanced sum of both the debit and credit entry should match otherwise repeat the steps. Repeat until the entries completely matches with each other and the transaction reaches a zero balance then only journal entry will be properly balanced.
- Memo Column – Once done, you should now enter a descriptive memo in the Memo Column so that you can check the transaction details on the report. This step is optional but it will help you later on to remember later why the entry was made.
- Name – Lastly you can also add the name of the customer, employee or vendor and mark both the amounts as billable.
STEP 4: Save the entry.
After cross checking all the information and debits and credits total, select the recurring journal entry schedule. Then finish the process by clicking on the “Save & Close” to save the journal entry and close the window. Or you can also click “Save & New” where you can save the journal entry and open a new window.
Using these steps, you can easily create a journal entry in QuickBooks Desktop. But if there is a mistake during the process QuickBooks will still give you the option to edit, reverse, or delete journal entries. Moreover, if in case you can’t get the proper resolution, you can also call the QuickBooks helpline number +1(844)405-0907 to troubleshoot it instantly. Our QuickBooks techie team experts will be there to help you round the clock. Also, you will get the most relevant answers to all your journal entry in QuickBooks related queries, so get in touch with us today.
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